The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-05-01
What a Few Conservative Business Men
Think About the Present Outlook.
Real-Estate Men View the Inward Tendency
OF the Market with Bright Anticipations-
The Transactions During the Week.

over. and, although, as he expressed it, he had
all the business he could attend to, he seemed to
want more. The days results had been en-
couraglng, so much SO that in his enthusiasm
over the outlook he remarked. For long and
weary years we real-estate dealers have been
compelled to walk. Within a short time we can
ride in coaches" The situation to him had
nothing but the signs of continued prosperity.
a period for which holders of realty had been
longing. For years they conld sell only after
long negotiations, and to people who could be
prevailed upon to buy lot here and there. The
business dragged, while those engaged in it
counted solely the indefinite future, and
Indianapolis they knew had the forces of capital,
facilities, situation and other conditions to
bring about Improvement There was certainty
in these but how and when to get them to work
presented problem that no one could solve
Courage was upheld by talk about good times
coming until everybody chung to the belief that
if they ever came it must be through natural
channels Nothing that the dealers or holders
could do had sufficient strength in it to give
prices the shadow of advance.
To make the condition improbable,
every body complained about high tax valuation.
This occurred particularly last year, when taxes
were paid appraisements that were out of all
proportion to the selling value of property. This
lax valuation had been made wien sales ruled
under an advance reached by period of unsuo-
stantal speculation. When the sexennial ap-
praisement of 1880 occurred, although market
values were going down, the chance of rise
within the next six years influenced the apprais-
ers to keep the tax values at the rate established
in 1874 No property could bear this burden
and hope to advance.
When the appraisement of last year was to be
made the prospects of relief appeared almost
hopeless, until. through the popular demand for
lower tax valuations on real estate, the Board OF
Equalization was compelled to meet the issue
During the fourteen days of appraising proceed
ing Assessor Quilts entrance to Office, all the
real estate plats of Center township had been
gone over. including those of the city. The ap-
praisers did not take the trouble to examine
property, but sat in their office and marked val
uations as they saw fit The figures did not
vary, except in isolated cases. from the old ap-
praisements. An average could have been
taken showing 20 per cent. increase of tax val
ues over selling prices. Real estate was held
down by grip that only radical action could
undo. Assessor Quill made many changes for
the better. and yet he was satisfied that the
proper proportion could not be reached until the
Board of Equalization ordered him to make a
horizontal reduction. AT meeting after meeting
of the board the question was discussed and yet,
while the benefit plain every one, op-
position prevented the accomplishment of the
purpose until the Board of Equalization had al
most filled its term. 1t was then that of
the better advised mem berS of the board took
the matter in hand and almost forced through
resolution reducing the tax values. It ap-
parently heavy cut and some said disastrous,
but within ten days the assessor had the figures
reduced by 20 per cent all around. giving an ag-
cregate valuation of $50 195, 432, instead of the
ourdensome S45, 248, 0i0, which had been main
tanned for six years or more, during the
period @. depression. While the benefit did not
at once appear. confidence IN real estate invest
ments was restored.
Little by little during the summer and fall
prices began to advance-at first almost imper-
ceptibly, but after time with strength that
told of prosperity in the year to come. The de-
mand increased, although not to any noticeable
extend. 1t was through inquiries here and there,
and the people began TO talk hopefully of what the
future might bring forth. During the winter the
transactions were better that they were the year
before. showing a still further advance 1t was
the struggle to get on a sound basis for the COM
ing spring and summer. Even Immediately be-
fore and after the holidays, when dealings in
real estate were expected to drag, the improve
ment preceding years was observable No
body had the speculative idea. Money went to
land because the feeling prevailed that real estate
would be good investment now
that it had been largely relieved of its onerous
tax value. There were. of course, more in
ouiries than actual sales, but the latter contin-
record
months of 1886 In February of this year the
sales were a shade ahead of the preceding Feb
ruary. Prices we're stiffened and brought the
March market to the front with still further
increase of transactions ana values So prom
Using we're these that the April deal made de-
cided advance, opening the market. as a real
estate dealer termed it, weeks earlier than
usual. All this mas led to double the amount of
business at this period Of the year since 1876,
and for every available piece of property there
is buyer at reasonable figures.
The increase of values about 25 per cent, al
though there are instances where it is made much
larger The demand is confined to one local
ity out preference, if there is any, seems to go
to the east. northeast and north while the traus-
actions in central property are at figures that
mean permanent investment. In this direction
outside capital tends although there is a great
deal of it that seeks land in the suburbs in large
tracts. 1t is the fulfllment of what Wall
street said some days ago. New York
Ct pitalist. who had few thousand dollars in In
lots. which he had been holding for
years telegraphed to his correspondent sell at
a reasonable figure. He went into Wall street.
and casually mentioning what he had DONE a
broker advised him to withdraw his orders
your Indianapolis property" he said, Twill
bring you much better price few weeks hence
than now. We are looking to that city, aud have
been for months"
What Conservative Business Men Think.
1t is the opinion of business men whose in
terests not altogether in real estate that the
prosperous period had its beginning in condi-
tions that forced a recovery from low prices
that have ruled property for years The limit
of depression had been reached, hence there
could be nothing but collapse a turn for the
better. Indianapolis had many natural in
fuences to help her to the latter that she
at once took on new strength at the
first appearance of revival in business
She has been gradually growing better
as she got further away from the effects of dis
astrous speculation. The advance in real val
ues is regarded thoroughly legitimate. which
would have continued without the influence of
natural gas. 1t is the effect OF the latter con
servatTve men mostly fear as there ia danger of
initiating speculative figures beyond a point
where substantial results support them. If
values respond solely to the possible discovery
of flowing wells the city they
will nullify what can certainly be looked
for if prices thus kept under
control of what creates permanent and substan-
tial growth. No depreciates the value of
gas in itself. 1t is only force that be
used towards imitation Of values that tho cooler